Sical Logistics achieves financial closure for greenfield project

Sical Logistics Ltd on March 19, 2008 announced that it has achieved financial closure for its greenfield iron ore terminal project at Ennore Port.

YES BANK, India's new age private bank, is the lead arranger and sole underwriter for the INR 3.4 billion loan, the other members of the loan syndicate being United Bank of India, UCO Bank and India Infrastructure Finance Company Ltd.

The project is being undertaken by a special purpose vehicle (SPV), Sical Iron Ore Terminals Ltd, promoted by Sical Logistics, with 89% equity stake, and L&T Infrastructure Development Projects Ltd.

The iron ore terminal is being developed on a build-operate-transfer (BOT), revenue-sharing contract with Ennore Port for 30 years including the construction period. The terminal will have a capacity for 12 million tonnes of cargo per year. Facilities include a jetty, ship loader, mechanized handling system with conveyor, storage, and wagon unloading system.

Initially, the terminal will handle Panamax and Cape sue vessels up to 150,000 MT DWT; after dredging, the terminal would be able to handle vessels of 250,000 MT DWT. Other features include the capability of an average 75,000-tonnes-per day ship loading rate; a stockpile area that can store 2.4 million MT of Iron ore; and a railway wagon unloading system that can handle up to twelve 3500-tonne rakes per day.

Construction work at the terminal began recently. In-principle approval has also been obtained from the Indian Railways for dedicated rail siding.

COMMENT FROM ASHWIN MUTHIAH, CHAIRMAN, SICAL LOGISTICS

The financial closure of the entire debt component for Sical Iron Ore Terminals was a significant achievement considering the market conditions, said Sical Logistics Chairman Ashwin Muthiah.

"We are impressed with the dedication and professionalism of the team at YES BANK; taking up and delivering on the responsibility of underwriting and arranging an INR 3.4 billion loan in a single shot is no doubt a proud achievement for YES BANK," Ashwin Muthiah said.

The Ennore terminal will open up major possibilities, both in terms of direction and volume of movement, given its location on India's eastern coastline, close to the strong demand centers in the Asia-Pacific, Ashwin Muthiah said.

The terminal further strengthens Sical's strategic framework of multi-modal integrated logistics, Ashwin Muthiah said, "Taken together with Sical's trucking and container train operations, the value proposition to the customer is clear--a significant debottlenecking of the supply chain, resulting in a seamless flow from the mines to the terminal and to the ultimate destination ports," he said.

Sical Logistics acquisition rumours

With reference to the news item appearing in a leading financial daily titled "Sical Logistics close to buying freight forwarding Company", Sical Logistics Ltd has clarified to that the Company has been looking at its presence in freight forwarding business for quite some time now, but has not reached any definitive agreement or concluded talks with any person/firm to acquire any freight forwarding Company; neither any proposal in this regard has been put up to the Board of Directors of the Company.

Sical Logistics Ltd

Sical Logistics Ltd has announced that the Company was awarded the Best Logistics Provider in Bulk Logistics at the Express, Logistics and Supply Chain Awards, held in Mumbai on September 28, 2007. The award was received by Sudhir S Rangnekar, MD and Group CEO of the Company.

The awards ceremony was part of the Express, Logistics and Supply Chain Conclave held on 'Leveraging the unique opportunities and challenges in the Indian market' in Mumbai from September 28 to 29 2007. The award was presented to the Company by Nigel Goode, Director of the Express, Logistics and Supply Chain Conclave and also the Director, Sales (South Asia), Maersk.

The Express, Logistics and Supply Chain awards are annual awards established in 2007 and aim to recognize and showcase leading companies in the logistics, supply chain and manufacturing domains. The participating companies were reviewed by an advisory council consisting of 22 jury members headed by Mr. Goode. The research partner for the awards was A C Nielsen, a leading research agency in the country. Criteria such as excellence in customer service, range of services, value added offerings and size of network were assessed for each participant.

Sudhir S Rangnekar, MD and Group CEO, of the Company said, "We are honored to receive the award for the Best Logistics Provider in Bulk Logistics. For more than 52 years, Sical has provided world class services to the Indian bulk logistics sector. Sical continues to be the largest bulk cargo handling service provider in the sub-continent by volume, moving 22 mn tonnes of cargo annually. Sical is also one of the leading logistics solutions provider for container and offshore logistics. We remain committed to excellence and will continue to deliver high quality, innovative customer focused solutions."

The bulk logistics division in the Company comprises of port and inland logistics. Port logistics consists of services like port handling, stevedoring, custom house agency, and shipping. Inland logistics consists of the services of trucking and warehousing. The company has operations across all the major ports of Chennai, Tuticorin, Vishakapatnam, Nhavasheva/Mumbai, Paradip, Goa, Mangalore and Ennore.